Performance Appraisal:

A performance appraisal means a regular review of an employee’s

job performance and overall contribution to the company. It
allows to provide positive feedback as well as identifying the areas
of improvement. From the Chapter of “Performance Appraisal”
we have learnt how to identify the strength and weakness of
employees to place right men in right job, to provide feedback to
employees regarding their performance and related jobs. We have
also learnt how to maintain and evaluate the potentials present in
a person for further growth and development. It is said that
performance appraisal is an investment for the company which is
justified by promotion, compensation, employee’s development,
selection validation, communication and motivation.

Advantages of Performance appraisal are discussed below-

 Performance appraisal helps the supervisors to mark out the

promotional programs for the efficient employees. For this
reason, inefficient workers can be easily being found and be
dismissed or demoted.
 For an organization, effective communication between
employees and employers is very important. Promotional
appraisal helps to make these connections. It also helps in
maintaining cordial and congenial labor management
 relationship. It also boosts spirit and the morale of
employees.
 Performance Appraisal helps marking out compensation
packages for employees. Compensation package includes
bonus, high salary rates, extra benefits, allowances and pre-
requisites are dependent on performance appraisal.
 The systematic procedure of performance appraisal helps the
supervisors to frame training policies and programs. It also
helps in framing future development programs.
 Performance appraisal is served as a motivational tool.
Through evaluating performance of employees, a person’s
efficiency can be determined if the targets are achieved.
Performance appraisal motivates a person very well for
better job and helps to improve performances in the future.